An onslaught of economic reports on Tuesday added to evidence of a U.S. recovery in full swing, yet one experiencing growing pains.

While retail sales in May fell more than forecast, Americans may simply be shifting more of their spending to services such as travel and entertainment. The government’s report also showed merchant receipts were stronger than previously reported during the prior two months, when stimulus checks powered demand.

Other data showed factory output last month was stronger than projected, helped by a rebound in auto production that remains beset by supply constraints and longer lead times.

Demand from consumers and businesses alike has flourished as the nation emerges from the pandemic and social activity picks up. At the same time, it’s caught producers and service providers off guard, leading to supply shortages for both materials and labor.

With demand outstripping capacity, inflationary pressures continue to build against a backdrop of extensive fiscal and monetary support.

A gauge of producer prices rose more than forecast in May, reflecting in part strong gains in margins received by wholesalers and retailers, the Labor Department reported Tuesday.

For their part, Fed officials, who conclude their two-day meeting on Wednesday, will debate whether it’s time to consider a shift in the central bank’s bond buying program because of the economic rebound so far. The Fed has said that the current surge in consumer prices, which jumped 5% in May, will be temporary.

For the last year, demand for goods has been propped up by elevated savings supported by fiscal stimulus, bringing total retail sales well above pre-pandemic levels.